Figure 7.3 Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.
-Refer to Figure 7.3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Question

Figure 7.3  Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked.
Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines.
-Refer to Figure 7.3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Quizplus · Accepted Answer

Moving from point A to B requires an increase in capital per hour worked, as point B has a higher level of capital per hour worked than point A.

Figure 73 Alt Text for Figure 7